The company's original business plan needs to be revised as new goals are set.
Reviewing the business plan can also help you see what goals have been accomplished, what changes need to be made, or what new directions your company's growth should take.
A business plan is essential if you're thinking of starting a business, but it's also an important tool for established businesses.
Viable businesses are dynamic; they change and grow.
But in actuality, the business plan for any business will change over time as the business develops, and any particular business may have multiple business plans as its objectives change.
In the growth phase an updated business plan is useful for forecasting or raising additional capital for expansion, and if you decide to sell or close the business the business plan can include strategies and timelines for the transfer to new ownership or dissolution of the company.
The exercise of budgeting and market planning will help you define your Target Market, your Unique Selling Proposition, optimum pricing strategies, and outline how you intend to sell/deliver your products to customers.
In addition, developing a budget for implementation will assist with determination of your startup and operating capital requirements.
Most new businesses need both startup and operating capital to get off the ground and without a well-developed business plan there is no chance of getting debt financing from established financial institutions such as banks or equity financing from angel investors (unless they happen to be family members or close friends).
And established businesses often need money, too, to do things such as buy new equipment or property, or because of market downturns.